The $900 Acre: This Doesn't Work
- Grant Wiese
- Sep 8
- 3 min read
NW Call to Action
The $900 Acre:
This doesn't work
Corn production has never been cheap, but the cost of raising a crop has escalated to levels that are leaving farmers with razor thin margins or outright losses in today’s market environment.
The Rising Cost of Production
The first chart, compiled by the National Corn Growers Association using USDA data, shows a dramatic increase in the average cost to grow an acre of corn over the past three decades.
In the mid 1990s, production costs hovered around $350 per acre.By 2012, that figure had nearly doubled, reaching $690 per acre.Today, the cost routinely exceeds $900 per acre, with projections for 2026 at $916 per acre.
While input prices like seed, fertilizer, and chemicals contribute significantly, the largest driver of increased costs has been the “Other Costs” category. This includes land expenses, labor, machinery, interest, and general overhead, all of which have risen steadily.
Breakeven Prices Outpace Market Prices
The second chart highlights the direct consequence of higher costs, elevated breakeven levels. Based on USDA yield scenarios ranging from 179 to 191 bushels per acre, the breakeven price for corn sits between $4.70 and $5.01 per bushel.
Unfortunately, those levels are above current market expectations. Futures prices and projected marketing year averages are closer to $3.90 to $4.00, leaving a gap of 70 cents to over $1 per bushel between what farmers need and what the market is willing to pay.
A Squeeze on Farm Profitability
This mismatch puts growers in a challenging position. Higher yields can help spread fixed costs, but even record harvests will not fully offset today’s expense structure. With breakeven prices consistently above projected market returns, the economics of corn farming have become unsustainable for many operations without outside support or exceptional yields.
What This Means for the Future
If current trends hold, more farms will be forced to rely on government support programs, crop insurance indemnities, or off farm income just to cover costs. At the same time, lenders are likely to scrutinize farm financials more closely, especially as working capital and debt service capacity are strained.
In the long run, the industry faces tough questions.
Can efficiency gains and technology adoption reduce the “Other Costs” category?
Will input suppliers and land markets adjust to reflect tighter farm margins?
Or will farmers continue to operate in a prolonged cycle of producing at or below breakeven?
When do we stop chasing a higher APH and only farm for profitability, not yield?
Corn farming has always been a game of thin margins, but today’s numbers make clear that the squeeze is tighter than ever. Without either a shift in market prices or a breakthrough in cost management, profitability will remain elusive for many growers.
A Call to Action
The numbers do not lie. Costs are climbing, breakevens are above market prices, and the margin for error is shrinking. The producers who will survive and thrive are the ones who confront these realities early, rather than waiting for another year of poor results to force action.
Now is the time to discover your cash flow position, stress test your farm’s finances, and start brainstorming the major adjustments that can protect your operation for the long term. Whether that means restructuring debt, trimming expenses, or rethinking land and machinery decisions, the sooner you act, the more options you will have. Do not wait until the banker or the market makes the choice for you.
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Have a great week!
Grant
